NEW YORK (TheStreet) -- Autodesk (ADSK) shares are down 1.76% to $56.51 in after-hours trading on Tuesday following the release of the software design company's first quarter financial results after the closing bell today.
Revenue for the quarter increased 9% year over year to $647 million, topping analysts' $635.08 million guidance.
"We had a solid start to the year with good progress on our business model transition. We added 95,000 subscriptions during the quarter, with approximately half coming from new subscription types. Over the course of the next two years we expect to transition the vast majority of our offerings to subscription, which provides our customers with greater flexibility and a better user experience," said CEO Carl Bass.
The San Rafael, CA-based company reported first quarter net income of 30 cents per share, 2 cents worse than the 32 cents it reported during the same period last year but in line with what analysts were expecting during the period.
TheStreet Ratings team rates AUTODESK INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AUTODESK INC (ADSK) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."